China’s average daily crude steel production fell to 2.176mn mt in late-January down by 1.8pc from mid-January, while up by 9.22pc from a year ago, according to the data released by China Iron and Steel Association (CISA). Many steel mills are lowering production in line with slow end-user demand ahead of the Chinese New Year.
| China’s average daily output in late-Jan (mn mt) | ||||
|---|---|---|---|---|
| Production | Late-Jan | Mid-Jan | Change | Change (YoY) |
| Crude Steel | 2.176 | 2.218 | -1.89% | 9.22% |
| Pig iron | 1.92 | 1.96 | -2.04% | 5.06% |
| Steel | 2.196 | 2.06 | 6.60% | 13.52% |
In late-January, daily steel products’ output increased to 2.196mn mt, up by 13.52pc from the prior year and up by 6.60pc from mid-January. Pig iron production was at 1.92mn mt, up 5.06pc from the prior year, while down by 2.04pc from the prior 10-day period. CISA compiles production data from around 90 statistically significant steel producers across China.
Cumulative production by key steelmakers in January was 69.018mn mt crude steel, with daily output at 2.226mn mt up by 13.04pc from the prior year period and 1.38pc from mid-January. Daily pig iron production rose by 10.04pc to 60.368mn mt and steel product output rose by 12.13pc to 65.379mn mt from the prior year period.
Steel inventories at key producers in late-January stood at 13.762mn mt, a decrease of 2pc or 280,400mt from mid-January, while up by 5.32pc or 695,100mt from the prior year. Higher inventories signals a slowdown in economic activity and weak demand ahead of Lunar New Year holidays.